In Poland, starting from March 1st, 2024, there has been a substantial rise in minimum pensions and various social benefits. This increase comes as a result of automatic indexation, without the need for applicants to file any paperwork.
Rise in Basic Benefits
The minimum pension has surged to 1780.96 PLN gross per month from the previous 1588.44 PLN. Additionally, other pensions, including those for total disability and family support, have also seen an increase. Rises extend to other benefits such as those for partial disability, with the minimum now standing at 1335.72 PLN gross.
Automatic adjustments cover a spectrum of long-term benefits and financial aids, including orphan’s benefits, caregiving supplements, and pre-retirement allowances. Notifications regarding the adjustments will be sent out, including information on the thirteenth-month bonus. Recipients can also access details through the ZUS Electronic Services Platform.
Mechanism of Indexation
The indexation mechanism involves multiplying the benefit amount as of the end of February by the indexation factor. This factor takes into account the average annual inflation for pensioner households plus at least a 20% real increase in average wages.
The total cost of these adjustments, encompassing various pension schemes, is estimated at around 43 billion PLN. This significant increase reflects Poland’s commitment to supporting its retirees and vulnerable populations.